Capital Analysis & Planning Template V4 Fall 2014

1. Capital Analysis & Planning Template V4Fall 2014 Capital Policy & Programs Branch/Financial Analysis and Accountability Branch Ministry of Education

2. Purpose: • Review Changes Implemented for V4 • Provide a Detailed Walk-Thru • Changes to Approval To Proceed Process • Review of Approval to Proceed Request Form

3. Capital Analysis and Planning Template (CAPT) Purpose • Tracking system for capital projects • Monitor boards Unsupported Capital Spending and overall Capital Surplus/Deficit position. • Unsupported Capital Spending: • TCA less DCC excluding land as per Schedule 5.3 • Capital Position (Surplus/Deficit): • Unsupported Capital Spending less any revenue applied in the year as per Table 4a on the CAPT. • Renewal/POD encumbrance • Committed Accumulated Surplus • Support Tool for Capital Discussions • Assessing financial implications at the Approval To Proceed stage • Determining OFA long-term financing eligibility. • RBP(Results Based Plan)- Ministry Forecasting

4. Improvements Implemented for V4 • Simplified the ATP process for the boards • Improved functionality

5. CAPT V4 Changes – General • Formatting • Bilingual Worksheets • Worksheet Name Changes • FIN-FR - Capital Financial Position • FIN-SR - School Renewal Schedule • POD-S - Proceeds of Disposition - School Sites • POD-A - Proceeds of Disposition - Admin Sites • PRO-M - Master Capital Projects (Active + Completed) – READ ONLY • PRO-A - Active Capital Projects • DEB - Project Debenture Matrix • OFA-1 - OFA Debenture Financing Request • OFA-2 - OFA Debenture Financing Request

6. CAPT V4 Changes – Project Eligibility Worksheet • Project Eligibility Worksheet name changed: • PRO-M (Project Master) – Listing of All Projects - Locked • PRO-A (Project Active) – Listing of Projects that are not completed such that they meet the following criteria: • $ Value in either NPF or Amounts to be Constructed • Boards will only be required to enter data on PRO-A worksheet only • Added ATP Section for the following: • 1. ATP Date • 2. ATP Amount • Consolidated: • GPL – Other (Col 10.2) • $120M Capital Funding (10.3) • Ministry funding columns agrees to the GSN Regulations • FDK Allocation column now agrees to the GSN Regulation and also includes Year 1-4 First Time Equipping and Year 5 estimated First Time Equipping

7. CAPT V4 Changes – Financial Position & Recovery/ POD • POD worksheets: • Added lines to report break-down information of committed POD by projects during 2013-14. • School Renewal Schedule: New • Boards are required to complete this worksheet if a project is: • Reported in unsupported capital spending and is funded by renewal • Financial Position & Recovery Worksheet name changed to Capital Financial Position • Added new Table 1c – capital activities post-Aug 31, 2014 by projects • Automated Table 4a SF interest earned to date cell which agrees to Sch 5 line 2.8.1 balance • Added new funding sources: SCI & 3rd party revenue • Updated Table 5 School Renewal Encumbrance

8. FIN-FP: Capital Financial Position Worksheet

9. Capital Financial Position Worksheet: Overview Left-hand side Unsupported Capital Spending Right-hand side Board’s Revenue Sources

10. Section A: Table 1

11. 2013-14 FS EFIS: Schedule 5.3

12. Section A: Table 1 • Unsupported capital spending balances as Aug 31, 2014 including: • sinking fund interest to be earned • depreciable assets excl. minor TCA • minor TCA • others Note: The total of the above unsupported capital spending = 2013-14 EFIS Schedule 5.3 Lines 2.1.1, 2.1.2 & 2.2 Col. 7 • Capital deficit on Land (Non-EDC) as Aug 31, 2014 = 2013-14 FS EFIS, Schedule 5.6B, Line 2.4 Col. 2 • Capital activities post Aug 31, 2014 • Amounts to be constructed at Aug 31, 2014: pre-loaded from Active Project Worksheet • Approved 2014-15: Ministry will update when ATP submitted • Requested: Ministry will update when ATP submitted

13. Section B: Table 1a, 1b & 1c

14. Section B: Table 1a, 1b & 1c • Table 1a – Boards to report depreciable assets requiring board’s funding by project. • Example: In this demo, the board has $7.2M depreciable assets excl. minor TCA in Table 1 which should be reported in Table 1a and indicate the corresponding funding sources for each project. • Table 1b - Boards to report minor TCA projects requiring Board’s funding by project. • Example: In this demo, the board has $2.0M minor TCA in Table 1 which should be reported in Table 1b and indicate the corresponding funding sources for each project. • Table 1c (New) - Boards to report any capital activities post 2013-14YE by project. Note: the balances in Table 1a, 1b & 1c should agree to the corresponding lines in Table 1 above. • New in CAPT v4 • Funding sources: added drop-down box • Comment box

15. Section C: Tables 2, 3a & 3b

16. Section C: Tables 2, 3a & 3b • Table 2– No change in this table. Board to report the 2013-14 Accumulated Surplus information. • Mirror to the 2013-14 FS EFIS Schedule 5 Note: If a board has any committed Accumulated Surplus for future capital activities, and the capital spending has not yet been incurred and reported in the CAPT Table 1; the board should deduct the Accumulated Surplus amount in the cell (N26). • Table 3a/3b – No change in these two tables. Proceeds of disposition information is pre-loaded from the POD-S/A worksheets.

17. Section D: Table 4a & 4b

18. Section D: Table 4a & 4b • Table 4a –the most important table in this worksheet!!! • The purpose of this table is to calculate the board’s capital surplus/(deficit) position at the time of submission by summarizing Tables 1-3b • Table 4b –The purpose of this table is to calculate the board’s capital surplus/(deficit) position after applying anticipated future revenue sources • New in the CAPT v4: • Added two new funding sources in table 4a/4b: School Condition improvement & 3rd party revenue • Automated the Sinking Fund interest earned to date cell, which is now linked to Table 2 committed sinking fund interest line (EFIS Sch 5 line 2.8.1) • Added comment box in each table

19. Section E: Table 5

20. Section E: Table 5 Table 5 – School renewal grant encumbrances. This table is linked to the new School Renewal Schedule worksheet to show the total available school renewal grant and encumbrances amount & percentage in 2014-15 and next 5 years.

21. Examples

22. FIN-FP: Examples Active Project Worksheet Capital Financial Position Worksheet

23. Example 1: Ontario High School Capital Financial Position Worksheet School Renewal Schedule Worksheet Ontario High School Project requires $500,000 Future School Renewal Grant FIN-FP worksheet Table 4b Cell P83 – automatically pre-load the amount from FIN-SR worksheet Cell E35

24. Example 2: Richmond Public School Richmond Public School requires total of $6.5M board funding: POD = $ 5.0M POD-S worksheet 2014-15 committed use of POD $5.0M and amount will be transferred to FIN-FP worksheet Table 3a & Table 4a Accum. Surplus = $ 1.0M EFIS Sch 5.5 & 5 and Table 2 Committed Capital Projects 3rd Party Revenue (Future) = $ 0.5M Table 4b and provide explanation in the comment box Active Project Worksheet

25. Common Issues – Year End • Common Issues: • CAPT submitted with Red Error Messages • Financial information does not agree to EFIS (ie. NPF column total in the Project Active worksheet has to reconcile with Section 12 of EFIS –Line 12.37) • Year End Submission: • Anticipated release of the CAPT V4 is late September and it is required to be submitted to the Ministry by November 28th, 2014. • As in previous years, this submission includes board’s request for long-term financing with the Ontario Financing Authority (OFA).

26. New - Process – Approval To Proceed (ATP) • Approval To Proceed Submission as of October 1, 2014 • When boards submit a request for approval to proceed to tender for a project, they will no longer be required to submit the CAPT. • Boards are now required to complete the Approval to Proceed (ATP) Request Form. • Will be posted on the FAAB website • Boards to submit to Ministry Capital Analyst and Financial Analyst • Once the ATP request is completed, your Capital Analyst will update the CAPT and send an updated copy.

27. Assistance: • Training Manual for the CAPT will be posted on the FAAB website. It includes detailed instructions for completing the CAPT • Capital Analysts and Financial Analysts are also available to assist boards in completing the CAPT (http://faab.edu.gov.on.ca/Contact_Us.htm)